ITV

Tag: MVCT

  • TV18 plans to raise Rs 1 billion, HSBC gets mandate

    TV18 plans to raise Rs 1 billion, HSBC gets mandate

    MUMBAI: Raghav Bahl-promoted Television Eighteen India Ltd. plans to raise Rs 1 billion by placing equity shares or convertible bonds with foreign institutional investors (FIIs).
    The company has mandated HSBC to manage the proposed issue, a source close to the company says. “We are close to finalising on whether it would be an equity or a convertible bond instrument. We have mandated HSBC and plan to raise Rs 1 billion,” he adds.

    When contacted, TV18 CEO Haresh Chawla declined to comment on the issue.

    TV18 had earlier, in its Extra Ordinary General Meeting (EGM), cleared a proposal to enable the board to issue up to an aggregate amount of Rs 3 billion through a “qualified institutional placement to qualified institutional buyers.” This was “just an enabling clause so that the board would not have to seek regulatory clearance again,” the source adds. By making qualified institutional placements, companies are able to raise money in India from FIIs.

    TV18 may use part of the amount to fund acquisitions and upgradation of studio infrastructure. Bahl has aggressive expansion plans, both in the TV and the internet space.

    Web 18, TV18’s internet arm, will have a chief executive officer to head the operations, the source says. Recently, TV18 Group announced the acquisition of three internet companies — Cricketnext.com, Compareindia.com and Urban Eye, a web design and technology firm. The internet businesses are being consolidated under Web 18.

    TV18 is also setting up a Media Venture Capital Trust (MVCT) through which it plans to invest Rs 500 million in the convergence space, identifying small-sized ventures to whom it would provide funding support at the early stage.

  • TV18 to provide VC funding to convergence companies, earmarks Rs 500 million

    TV18 to provide VC funding to convergence companies, earmarks Rs 500 million

    MUMBAI: Raghav Bahl-promoted Television Eighteen is jumping into the convergence arena. The company plans to invest Rs 500 million in this space, identifying small-sized ventures which need funding support.

    TV18 will function more as a venture capitalist, making investments into these companies at an early stage. “We realise there are opportunities in the convergence area of internet, TV, and broadband. Small companies engaged in this field are springing up. We plan to support them and make judicious investments spread over a string of companies. We have taken an enabling resolution to make investments in this space up to a maximum of Rs 500 million,” says a senior company executive.

    TV18 is setting up a Media Venture Capital Trust (MVCT) through which it will make these investments. The MVCT shall be suitably structured as a tax efficient investment vehicle for undertaking these investments and will offer co-investment opportunities to the promoters of the company and other identified reputed investors.

    The investments will be primarily in high growth companies. “TV18 will seek to invest, directly or indirectly minority stakes in these companies through repayment guaranteed / collateralized instruments convertible into equity, with an option to increase up to majority stake at a later date, wherever possible, subject to necessary provisions and approvals,” the company informed the BSE.

    Outside these investments, TV18 will continue to acquire vertical portals. The company, which has internet ventures being consolidated into a wholly owned subsidiary, acquired in April a 50 per cent stake in the Indian arm of Jobstreet.com. Eariler in the year, it had invested in Yatra Online where other investors included Anil Ambani’s Reliance Capital and Norwest Venture Partners (NVP) – Promod Haque’s leading venture capital firm.